Bitcoin Cash Analysis: Fresh Rally Likely If Bulls Clear $250

  • Bitcoin cash is eyeing a fresh increase above the $250 resistance against the US Dollar.
  • The price is now trading above the $240 zone and the 55 simple moving average (4 hours).
  • There was a break above a key bearish trend line with resistance near $240 on the 4-hour chart of the BCH/USD pair (data feed from Coinbase).
  • The pair must clear $250 and $258 to start a fresh increase in the near term.

Bitcoin cash price is consolidating gains above $240 against the US Dollar, unlike Bitcoin. BCH/USD could start a fresh surge if it clears the $250 level.

Bitcoin Cash Price Analysis

Bitcoin cash price started a major decline below the $260 support zone. BCH traded below the $240 and $230 support levels before the bulls appeared.

A low was formed near $218 before the price started a decent recovery wave. There was a move above the $230 and $232 resistance levels. The price climbed above the 23.6% Fib retracement level of the downward move from the $298 swing high to the $218 low.

There was also a break above a key bearish trend line with resistance near $240 on the 4-hour chart of the BCH/USD pair. Bitcoin cash is now trading above the $240 zone and the 55 simple moving average (4 hours).

On the upside, the price is facing resistance near the $250 level. The first key resistance is near $258. It is close to the 50% Fib retracement level of the downward move from the $298 swing high to the $218 low. The next major resistance is near $268, above which the price may perhaps gain bullish momentum.

The next major resistance is near the $280 level. Any more gains above $280 could set the pace for a move toward the $295 level or even $300. If not, the price might start another decline.

Immediate support on the downside is near the $238 level and the 55 simple moving average (4 hours). The first major support sits near the $232 level. The next major support is near $225, below which the bears might aim for $218.

Bitcoin Cash Price
Bitcoin Cash Price

Looking at the chart, Bitcoin Cash’s price is now trading above the $240 zone and the 55 simple moving average (4 hours). Overall, the price must clear $250 and $258 to start a fresh increase in the near term.

Technical indicators

4 hours MACD – The MACD for BCH/USD is gaining pace in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is above the 50 level.

Key Support Levels – $240 and $232.

Key Resistance Levels – $250 and $258.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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